Sunland manufactures competition stunt kites. In November, Charles Wilson prepared the following production budget for the first quarter of the coming year. Desired ending inventory is based on the following month's budgeted sales. January February March Quarter Budgeted sales 44,000 32,000 35,000 111,000 Desired ending inventory 6,400 7,000 2,400 2,400 Kites needed 50,400 39,000 37,400 113,400 Less beginning inventory 8,800 6,400 7,000 8,800 Budgeted production 41,600 32,600 30,400 104,600 Following lower-than-expected sales in December, Jerry conducted an inventory count on January 2 and discovered that the company had 5,000 completed kites on hand. He decided that given the slow sales in December, the company should decrease its desired ending inventory level from 20 to 10% of the next month's sales volume. (a) Prepare a new production budget for the first quarter. Budgeted unit sales Budgeted ending inventory Total units required Beginning inventory Budgeted production January 44000 8000 February 32000 8750 March 350